New Delhi | Jagran Business Desk: Ending wait for the over a crore Central government employees, the Centre is most likely to implement the hike and disbursement of the Dearness Allowance (DA) by the end of February 2021. According to the information, the government will increase the DA of its employees by 4 per cent for the period of January-June 2021 from this month onwards. 

However, an official confirmation on the exact date will be announced by the government later this month. The hike in DA will benefit about 48 lakh Central Government employees. Apart from this, the government is also expected to announce a hike in dearness relief (DR) which is expected to benefit over 65 lakh, central government pensioners.

The increase in dearness allowance is likely to be in accordance with the accepted formula, based on the recommendations of the seventh Central Pay Commission.

Notably, in March 2020, the Union Cabinet, chaired by Prime Minister Narendra Modi, had approved to release an additional instalment of DA to central government employees and Dearness Relief (DR) to pensioners with effect from January 1, 2020.

The finance ministry had then informed that there will be an increase of 4 per cent over the existing rate of 17 percent of the Basic Pay/Pension, to compensate for price rise.

Notably, a demand has also been raised to hike it to 28 per cent seeing as to high inflation is taking a big toll and expenditure is rising in households.

Earlier, the government had said that the dearness allowance for central government employees will remain unchanged till 2021. However, with the pandemic-hit economy getting back on track, hopes of the government reviewing its decision have revived. 

The hike in DA and DR will cost Rs Rs 12,510.04 crore and Rs 14,595.04 crore respectively in Financial Year 2020-21 (for a period of 14 months from January 2020 to February, 2021). The decision will benefit 48.34 lakh central government employees and 65.26 lakh pensioners.  

Posted By: Abhinav Gupta